/American%20Airlines%20Group%20Inc%20plane-by%20kameraworld%20via%20iStock.jpg)
American Airlines Group Inc. (AAL), headquartered in Fort Worth, Texas, is a leading player in the global airline industry. With a market cap of $7.58 billion, American Airlines operates an extensive network of domestic and international flights, providing passengers with comprehensive travel services.
Companies valued at less than $10 billion are generally considered “mid-cap” stocks and American Airlines Group fits into this category. Its commitment to operational efficiency and enhancing customer experiences makes American Airlines a leader in the global aviation industry, maintaining a strong presence in both domestic and international markets.
AAL shares are trading 28.8% below their 52-week high of $16.15, which they hit on Mar. 4. The stock has gained 1.5% over the past three months, underperforming the Dow Jones Industrial Average Index’s ($DOWI) 8% returns over the same time frame.
In the longer term, AAL is down 16.3% on a YTD basis, and the shares have declined 10.2% over the past 52 weeks. The Dow has gained 12.3% in 2024 and 26.1% over the past year.
AAL has been trading below its 200-day moving average since late May, which confirms its bearish trend. However, it has been trading above the 50-day moving average since late August.
AAL stock surged more than 4% on Jul. 25 following a mixed Q2 earnings report. The company reported earnings of $717 million, or $1.09 per share, surpassing Wall Street expectations of $1.04 per share. The company reported revenues of $14.33 billion, which fell short of the anticipated $14.42 billion. For the full year, AAL expects adjusted earnings per share to be between $0.70 and $1.30.
On Jul.19, American Airlines stock fell nearly 1% due to a global IT outage that delayed operations and caused flight cancellations worldwide.
Highlighting the contrast in performance, rival Delta Air Lines, Inc. (DAL) has outperformed both the stock and DOWI, with a 27% gain on a YTD basis.
Despite AAL's underperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target is $12.29, suggesting a premium of 6.2% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
